Specific Performance

Specific performance is a court remedy that orders a party to carry out the contract instead of paying money damages. Courts have long treated each parcel of land as unique, so buyers in real estate cases sometimes ask a court to force the seller to sell.

This remedy matters most when a seller backs out of a $500,000 sale because a higher offer came in. The buyer could take back their $10,000 deposit, or, if the contract allows, sue to make the seller close at the agreed price.

Many purchase contracts limit which remedies each side may use. Some cap the seller's recovery at the earnest money through a liquidated damages clause, and some name specific performance as a buyer remedy. A real estate attorney can tell you what your contract and state allow. See also breach of contract.